Why Morningstar’s CEO says your returns are heading lower
Kunal Kapoor sees a convergence of public and private markets that retail investors will benefit from. But he also warns they need to lower their expectations.
Kunal Kapoor, the chief executive of $US13 billion ($20.2 billion) financial services and data giant Morningstar, likes to explain the vagaries of markets to his kids by showing them a series of graphs.
A one-day price graph often looks like a picture of high drama, he explains. A five-day graph seems much smoother. Zoom out to a year, and those five days disappear. Zoom out five years, and the longer-term trend emerges.
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James Thomson is senior Chanticleer columnist based in Melbourne. He was the Companies editor and editor of BRW Magazine. Connect with James on Twitter. Email James at j.thomson@afr.com
